The rupee had closed at 69.71 on Tuesday
The rupee had closed at 69.71 on Tuesday

Rupee edges higher against US dollar

  • Retail inflation rebounded in February, but was still benign enough to support calls for the RBI to lower interest rates
  • Consumer prices rose 2.57% last month from a year earlier

Indian rupee on Wednesday traded marginally higher against US dollar, tracking gains in local equity markets. At 9.08 am, the rupee was trading at 69.64 a dollar, up 0.11% from its previous close of 69.71. The home currency opened at 69.69 a dollar and touched a high of 69.63.

Retail inflation rebounded in February, but was still benign enough to support calls for the RBI to lower interest rates at next month’s monetary policy meeting. Consumer prices rose 2.57% last month from a year earlier, the Statistics Ministry said in a statement on Tuesday. That compares with the 2.4% median estimate in a Bloomberg survey of 34 economists

Crude prices gained for a third day after an industry report showed an unexpected drop in US stockpiles at a time when the world’s top producers are said to be looking at a plan to extend their output curbs.

The 10-year bond yield was trading at 7.355%, compared to its Tuesday's close of 7.356%. Bond yields and prices move in opposite directions.

So far this year, the rupee has gained 0.15% against the US dollar, while foreign investors have bought $3.62 billion in equity and sold $850.million in debt market.

India's benchmark Sensex rose 0.24% to 91.24 points in pre-open trade. Year to date, it rose 4.07%.

Asian currencies were trading lower. South Korean won was down 0.25%, Malaysian ringgit 0.13%, China Offshore 0.13%, Philippines peso 0.08%, Indonesian rupiah 0.06%, Singapore dollar 0.05%. However, Japanese yen was up 0.14%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.994, up 0.06% from its previous close of 96.935.

(Bloomberg contributed this story)

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